What are the factors which need to be considered before opting for a car/auto loan?
The factors which needs to be considered before opting for a car loan are • The cost of the car based on make, model and colour. • The amount and type of insurance cover you wish to opt for which is included in the costing of the car. (Only a few banks cover the insurance) • The kind of car accessories you wish to purchase for your car which would ultimately increase the cost of the car. (Not all banks fund you for accessories). • Initial down payment for the car, which is paid upfront by the buyer remainder of which will be the car loan amount. • Percentage of financing available for the car depending on the make, model of the car and the borrowers repayment capacity. This aspect varies according to the lender/banks discretion. Some banks offer up to 90% financing for new cars. • In case of purchase of second hand cars the amount of financing is largely dependent on the cars resale value and differs across banks/lending institutions.
